Real Estate Transactions Down in Q1 2010 for Valencia County

The trend continues as closed real estate transactions are down for the fourth year in a row in the first quarter in Valencia County New Mexico. The latest figures show that in 2010 there were 104 closings, down 8% from 2009, and down 61% from it's peak in 2006 when there were 262 transactions closed during Q1 in Valencia County. When comparing March sales over the past few years you will see similar results with 2010 claiming last place once again with 43 sales compared to 44 in 2009 and 47 in 2008.

As the nation's economy begins to show signs of recovery all eyes in this county look toward similar results. It seems that, after studying the trends in the numbers, that Valencia County may haver reached the "bottom" when it comes to home sales. Steady sales numbers over the past few months are in indicator that things may not get worse. Most Real Estate Professionals in this area have adjusted their approach to reflect the current conditions and are ready for the long haul.

As we move forward, the general feeling is that Valencia County is in need of permanent jobs. The job base in the area in the past few years relied heavily in building trades and industries that revolved around the housing market. As we can plainly see from the current fallout, diversity in our workforce will lead to more sustainable prosperity.

February Sales Down in Valencia County

Financing seems to be the biggest reason for a lack of closed transactions heading into 2010. Sales for February 2010 (31)were down 50% from the same month 2007 (61), and down 14% from 2009 (36) for Valencia County. The excitement of this year being a turn around year for real estate sales is beginning to wear off.

Maybe an even more significant number is the Median home price for Valencia County homes that sold is down 16% from $142,500.00 last year to $118,000.00. This is an indicator that short sales, foreclosures and distressed sales are impacting the value of homes. Time and time again we see a lack of suitable comparables necessary for accurate and favorable appraisals, making it even harder to get to the closing table.

FHA loans continue to be the top choice of financing, leading the way with 10 of the mentioned closed sales, Conventional loans accounted for 8 of the closings, VA with 4, NMREC with 4 and a total of 5 cash sales.

Interest rates are holding in the high 5's and it is a really great time to buy. Belen, Los Lunas, Bosque Farms, and Peralta all offer some great investment opportunities.

Valencia County Sales Struggle in 2009

After a dismal 2008, real estate sales in Valencia County had only one way to go, right? Wrong. Not too far off the pace set in 2008 closed transactions of residential properties in Valencia County in 2009 came in just under the previous year. The sentiment after 2008 by local Real Estate Professionals was that things will be better in 2009.

The bright side of this equation is that the last 1/4 of the year was the strongest. Typically November and December will bring the sleepiest months of the year in terms of sales, but this time around numbers were right in line with the best months of 2009. As we ease into 2010 with that momentum and the extension and expansion of the Buyer Tax Credit we may be in line to have a strong spring, something that has eluded our area for the past two years.

As you will note from our graph the sales in Valencia County have returned to the levels of 2001. All data is courtesy of SWMLS.